- Summary:
- Gold price is holding steady today as investors react to the Senate election in the United States ahead of the ADP employment numbers
Gold price is holding steady as investors react to the results of the Georgia elections. The XAU/USD is trading at 1,946, which is 10.50% higher than the December low of 1,765. Silver price is also down by 0.25% while copper has jumped by more than 0.35%.
What happened: Gold price is reacting to the election results in Georgia, where the two Democrats candidates have won. This gives Joe Biden a narrow lead in the Senate, which means that he will be able to push his agenda.
In general, this agenda includes a robust stimulus package, higher taxes, and higher wages. He has also promised to implement more regulations.
In reaction to the victories in Georgia, the dollar index dropped by about 0.15% while gold price fell by 0.17%.
What next: Later today, the gold price will react to the ADP private nonfarm payroll numbers that will come out at 13:15 GMT. Economists expect that the numbers will show that American employers added just 88k jobs in December.
That will be the lowest addition since April. It will provide an incentive for the Biden administration, together with the new Democratic Congress to provide additional stimulus to individuals.
Gold price technical outlook
On the daily chart, we see that gold price has done well in recent weeks. It has even managed to move above the falling channel that is shown in black. Also, it has moved above the short and long-term moving averages. Notably, it is slightly below the important resistance level at 1,966.
Therefore, I predict that the price will continue rising as bulls target the next resistance level at 2,000. On the flip side, a move back to the falling channel will invalidate this trend.
Gold technical chart
